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HomeMy WebLinkAboutRedevelopment Agency/City of Huntington Beach - Operative Agreement Amendments F/Y 1993-1994 - 1994-10-04 T NCILIREDEVELOPMEN AGENCY ACTION yly DATE: October 3. 1994 BLE MAYOR/CHAIRMAN AND UNCIU REDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator/E r PREPARED BY: ROBERT J_ FRANZ, Deputy City Admini �� BARBARA A. KAISER, Deputy City Administr ecto evelopment SUBJECT- AMENDMENT OF OPERATIVE AGREEMENT B EEN HE TY AND THE REDEVELOPMENT AGENCY FOR 199 194 Consistent with Council Policy: [ ✓ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments %9.0 STATEMENT OF OBJECTIVE: The Redevelopment agency of the City of Huntington Beach incurs debt in order to receive tax increment revenue. The Agency is also required to file an annual statement by October 1 with the County to document this debt. This statement is also needed for audit purposes. RECOMMENDED COUNCIUAGENCY ACTION- That the City Council/Redevelopment Agency approve the following Operative Agreement Amendments for fiscal year 1993/94: Project Amendment Increase Increase Total Increased Area Number (Decrease) Debt (Decrease) Debt (Decreased) 07101 to 09130/94 07101 to 09/30 Debt Main/Pier 13 $ 3,357,705 $ 1,297,163 $ 4,654,868 Talbert/Beach 13 5.774 51.443 57,217 Oakview 13 (56,586) 646,022 702,608 Yorktown/Lake 12 13,409 23,352 36,762 Huntington Center 12 275,434 56,359 331.793 Total $ 3,044,868 - $ 669,578 $ 3,714,446 ANALYSIS: The Redevelopment Agency changed its fiscal year so that 1993/94 is a one- time, fifteen month fiscal year ending September 30, 1994. Staff has contacted the Orange County Auditor/Controller's Office and determined that the Council/Agency can adopt the statements as of September 30, 1994_ However, according to Assembly Bill 1290, the Council/Agency must separately identify debt incurred after July 1 and before September 30. This action separately identifies the debt as of June 30 and September 30. The debt statements must be submitted to the Auditor/Controller by October 1, 1994_ Staff is submitting the agreements for Council/Agency approval. i� T REQUEST FCOCOUNCIL/REDEVELOPMENT JRCY ACTION AMENDMENT OF OPERATIVE AGREEMENTS BETWEEN THE CITY AND THE REDEVELOPMENT AGENCY FOR 1993194 The changes in Redevelopment Agency debt due to the City for 1993/94 are: 1993/94 CHANGES IN DEBT 07/01/93 to 07/10/94 to Total Fifteen 06/30/94 09/30/94 Months Indirect Advances $ 50,662 $ 12,665 $ 63,327 Interest 5,418,127 1,354,532 6,772,659 Repayments 2,423,921 697,619 3,121,540 Total Charges $ 3,044,868 $ 669,578 $ 3,714,446 Debt, Beginning of Period $ 80,491,692 Debt, End of Period $ 84,206,138 A detailed description of each of these categories follows-. 1. Indirect Advances - The City estimated indirect costs incurred on behalf of the Agency. The Health and Safety Code allows these amounts to show as advances to the Agency and count as debt. The cost of the Business Development Division (which is paid out of Redevelopment Funds) are along with credits for use of agency buildings, credited against the debt_ Below is an analysis of how the amount was computed: INDIRECT COSTS 07/01/93 to 07/10/94 to Total Fifteen 06/30/94 09/30/94 Months Total General Fund $ 263,318 $ 65,830 $ 329,148 Indirect Costs Less Credits 212,656 53,164 265,820 Total 1993/94 $ 50,662 $ 12,665 $ 63,327 Indirect Charges 0005383.01 -2- 0910819411:02 AM REQUEST FACOUNCILIREDEVELOPMENT AGRCY ACTION AMENDMENT OF OPERATIVE AGREEMENTS BETWEEN THE CITY AND THE REDEVELOPMENT AGENCY FOR 1993/94 The breakdown by project area is: Project 07/01/93 to 07/10/94 to Total Fifteen Area 06/30/94 09/30/94 Months Main/Pier $ 0 $ 0 $ 0 Talbert/Beach 4,799 1,200 5,999 Oakview 23,008 5,752 28,761 Yorktown/Lake 3,585 896 4,482 Huntington Center 19,268 4,817 24,086 Total $ 50,662 $ 12,665 $ 63,327 2. Interest - The City charged the Agency 7.00% during the year on all outstanding advances_ Interest accrued to the following funds: INTEREST CHARGES TO AGENCY Funding 07/01/93 to 07/10/94 to Total Fifteen Source 06/30194 09/30/94 Months Direct Advances - General Fund $ 923,505 $ 230,876 $ 1,154,382 Indirect Advances - General Fund 748,243 187,061 935,054 Land Sale - General Fund 3,320,064 830,016 4,150,080 Sub Total General Fund $ 4,991,813 $ 1,247,953 $ 6,239,766 Other Funds: Gas Tax Fund 53,225 13,306 66,532 Water Fund 125,531 31,383 156,914 Sewer Fund 5,234 1,308 6,542 Drainage Fund 25,825 6,456 32,281 Park Acquisition and Development Fund 188,998 47,250 236,248 Parking Authority 8,146 2,036 10,182 Capital Improvement Fund 19,355 4,839 24,193 Sub Total Other Funds $ 426,314 $ 106,579 $ 532,893 Total All Funds $ 5,418,127 $ 1,354,632 $ 6,772,659 0005383.01 -3- 09/14/94 1:26 PM REQUEST FACOUNCILIREDEVELOPMENT AGNICY ACTION AMENDMENT OF OPERATIVE AGREEMENTS BETWEEN THE CITY AND THE REDEVELOPMENT AGENCY FOR 1993/94 The above total of accrued interest was accrued to the following project areas: Project 07/01/93 to 07/10/94 to Total Fifteen Area 06/30/94 09/30/94 Months Main/Pier $ 4,879,126 $ 1,219,782 $ 6,098,908 Talbert/Beach 200,974 50,244 251,218 Oakview 192,905 48,226 241,132 Yorktown/Lake 89,824 22,456 112,280 Huntington Center 55,297 13,824 69,121 Total $ 5,418,127 $ 1,354,532 $ 6,772,659 3. Repayments of Debt - The 1993/94 annual budget (including 3 month extension) and an action repaying Agency debt resulted in $3,121,540 of debt repayments to the City_ All repayments were applied according to previous City Council/Redevelopment Agency direction. The repayments were: AGENCY REPAYMENTS Ori inal 1993194 Repayments $ 1,352,500 Abdelmuti Offsites 372,619 Three Month Extension Repayments 325,000 Additional Repayments due to Specific City Council Action 1,071,421 Total Budgeted Repayments $ 3,121,540 Project 07/01/93 to 07/10/94 to Total Fifteen Area 06/30/94 09/30/94 Months Main/Pier $ 1,521,421 $ 77,381 $ 11444,040 Talbert/Beach 200,000 200,000 Oakview 272,500 700,000 972,500 Yorktown/Lake 80,000 80,000 Huntington Center 350,000 75,000 425,000 Total $ 2,423,921 $ 697,619 $ 3,121,540 0005383.01 -4- 0910819411:02 AM REQUEST FO4PCOUNCILIREDEVELOPMENT AACY ACTION AMENDMENT OF OPERATIVE AGREEMENTS BETWEEN THE CITY AND THE REDEVELOPMENT AGENCY FOR 1993/94 These operative agreements do not address changes in debt from non-City sources The loan agreements from the Huntington Beach Public Financing Authority (bonds), Emerald Cove (COP's), mortgages, and notes payable to outside parties are not included because each contains a separate agreement. However, the amounts are summarized in Exhibit I, (Summary of Total Agency Debt)_ FUNDING SOURCE- Not applicable ALTERNATIVE ACTION: 1. Adopt the amendments with modifications. 2. Do not adopt the agreements in which case the prior year debt statement would apply. ATTACHMENTS. 1_ Exhibit I - Summary of All Agency Debt by Project Area 2. Exhibit II - Summary of Changes in Agency Debt by Project Area 3. Operative Agreement Amendments 0005383.01 -5- 0910819411:02 AM BEKOP94_XLS EXHIBIT I -SUMMARY OF ALL AGENCY DEBT BY PROJECT AREA SEPTEMBER 30, 1994 TALBERT/ Yodtctown! SUMMARY OF AGENCY DEBT- IIIAINlPIER BEACH OAKVIEW Lake HTO CTR TOTAL GENERAL FUND DIRECT ADVANCES 11.485.792 0 0 251.383 0 11.737.175 GENERAL FUND INDIRECT ADVANCES 4.014.577 19.201 2.314.043 291.473 801.978 7.441.271 DEFERRED LAND SALES 32.588 417 0 0 245.000 0 32.833.417 INTEREST 24.363.085 1.976 697.260 309.177 69.119 25.440.616 TOTAL GENERAL FUND 72.451.871 21.177 3.011.302 1.097.033 871.097 77.452.479 OTHER FUNDS PARK A AND D 0 2.936.224 0 0 0 2.936.224 SEWER FUND M.560 81.312 0 0 0 211.872 DRAINAGE FUND 314.653 86.556 0 0 0 401,209 CAPITAL IMPROVEMENT FUND 0 0 0 300.688 0 300.688 PARKING AUTHORITY 126.552 0 0 0 0 126.552 WATER FUND 1.950.219 0 0 0 0 1.950 219 GAS TAX FUND 826.894 0 0 0 0 826.894 TOTAL DEBT OTHER FUNDS 3.348.878 3.104.093 0 300.688 0 6.753,659 TOTAL OPERATIVE AGREEMENT DEBT 75.800.749 3.125.269 3.011.302 1.397.721 871.097 84.206.138 OTHER DEBT: Emerald Cove Bonds 0 5.635.000 0 0 0 5.635 000 Notes Payable 705.261 0 0 0 0 706,261 Public Financing Aut 13.565.682 1.858.420 3.376.935 0 11.208.442 30.009,479 Low Income Housing 1362.500 1.362.500 ERAF 227.191 27.903 116.854 23.274 260.948 656.170 OTHER DEBT 15.861.634 7.521.323 3.493.789 23.274 11.469.390 38.369.410 TOTAL ALL AGENCY DEBT 91.662.383 10 646.592 6.505.091 1.420.995 12.340.487 122.575.548 Page 1 • BEKOP94_XLS • EXHIBIT II -STATEMENT OF CHANGES IN OPERATIVE AGREEMENT DEBT BY PROJECT AREA SEPTEMBER 30, 1994 YORKTOWN/ MAIN:PIER TALBERT/BEACH OAKVIEW LAKE HTG CTR TOTAL OPERATIVE AGREEMENT DEBT 111193 71.145.881 3.068.052 3.713.910 1.360.959 1.202.890 80.491.692 INCREASES ACCRUED INTEREST 6.098.908 251.218 241.132 112.280 69.121 6.772.659 NEW ADVANCES 0 5.999 28.761 4.482 24.086 63.327 TOTAL INCREASES 6.098.908 257.217 269.892 116.762 93 207 6.835,986 DECREASES.DEBT REPAYMENTS (1.444.040) J200.000) (972.500) (80.000) (425.000) (3.121.540) OPERATIVE AGREEMENT DEBT 9130M 75.800.749 3.125.269 3011.302 1.397.721 871.097 84.206.138 Page 1 AMENDMENT NO 13 TO OPERATIVE AGREEMENT NO 2 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR THE IMPLEMENTATION OF THE MAIN/PIER PROJECT AREA Operative Agreement No 4 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Main/Pier project area is hereby amended as follows Section 7 is amended to read as follows SECTION 7 - In addition to the above stated assistance provided by the City to the Agency, the Agency s debt is as follows Previous Balance $ 71,145,881 Increase 3,357,705 Increase 07/01/92 to 06/30/94 Increase 1,297,163 Increase 07/01/94 to 09/30/94 New Balance $ 75,800,749 Such new balance of Seventy-Five Million, Eight Hundred Thousand, Seven Hundred Forty-Nine Dollars ($75,800,749) represents principal and accrued interest through September 30, 1994 These sums shall be a debt of the Agency to the City and bear simple interest at the rate of seven percent (7 00%) per annum APPROVED by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the 3�,d day of ✓ 11994 Mayor/Chairperson ATTT APPROVED AS TO FO / i l er _ o-n—c ,r.1ro -li City Attomey/Agenci Counsel r�,J �-�, 7 RE EWER AND APPROVED IN A AP ED City Administrator Dep y A inistra r Chief Executive Director Administra ve Services Dept 7/opagree/9/20/94 AMENDMENT NO. 13 TO OPERATIVE AGREEMENT NO. 1 BETWEEN THE CITYOF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR THE IMPLEMENTATION OF THE TALBERTIBEACH PROJECT AREA. Operative Agreement No. 1 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Talbert/Beach project area is hereby amended as follows Section 7 is amended to read as follows: SECTION 7 - In addition to the above stated assistance provided by the City to the Agency, the Agency's debt is as follows: Previous Balance $ 3,068,052 Increase 5,774 Increased 07/01/93 to 06/30/94 Increase 51,443 Increased 07/01/94 to 09/30/94 New Balance $ 3,125,269 Such new balance of Three Million, One Hundred Twenty-Five Thousand, Two Hundred Sixty-Nine Dollars ($3,125,269) represents principal and accrued interest through September 30, 1994. These sums shall be a debt of the Agency to the City and bear simple interest at the rate of seven percent (7 00%) per annum. APPROVED by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the 3 '-� day of (DG+-zber 1994. Mayor/Chairperson ATTEST. - APPROVED AS TO FO City Clerk/Agency Clerk/ !2 sty AttomeylAgenc ounsel q � REVIEWED AND APPROVE • I Y116D D eOrV E D: / 7 City Admi istrator eputy ityrAdminigtrator Chief Executive Director Administrative Serve es De 7/opagree/9/20/94 • • AMENDMENT NO. 13 TO OPERATIVE AGREEMENT NO. 3 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR THE IMPLEMENTATION OF THE OAKVIEW PROJECT AREA Operative Agreement No. 3 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Oakview project area is hereby amended as follows- Section 7 - is amended to read as follows: SECTION 7 - In addition to the above stated assistance provided by the City to the Agency, the Agency's debt is as follows- Previous Balance $ 3,713,910 Decrease (56,586) Decrease 07/01/93 to 06/30/94 Decrease (646,022) Decrease 07101/94 to 09/30/94 New Balance $ 3,011,302 Such new balance of Three Million, Eleven Thousand, Three Hundred and Two Dollars ($3,011,301) represents principal and accrued interest through September 30, 1994. These sums shall be a debt of the Agency to the City and bear simple interest at the rate of seven percent (7.00%) per annum. APPROVED by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the r�l day of �]cfz b e r 1994. Mayor/Chairperson r ATTEST: - APPROVED AS TO City Clerk/Agency Clerk 17C ity Aftorney/Agenef Counsel 94 9 yf, REVIEWED AND APPROVED: INl- EB N - ROVED: City Administrator Deputy City Admini ator Chief Executive Director Administrative Servi pt. 7/opagree19120194 AMENDMENT NO. 12 TO OPERATIVE AGREEMENT NO. 4 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR THE IMPLEMENTATION OF THE YORKTOWNILAKE PROJECT AREA. Operative Agreement No. 4 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Yorktown/Lake project area is hereby amended as follows. Section 7 is amended to read as follows: SECTION 7 - In addition to the above stated assistance provided by the City to the Agency, the Agency's debt is as follows- Previous Balance $ 1,360,959 Increase 13,409 Increase 07/01/93 to 06/30/94 Increase 23,352 Increase 07/01/94 to 09/30/94 New Balance $ 1,397,721 Such new balance of One Million, Three Hundred Ninety-Seven Thousand, Seven Hundred Twenty-One Dollars ($1,397,721) represents principal and accrued interest through September 30, 1994. These sums shall be a debt of the Agency to the City and bear simple interest at the rate of seven percent (7 00%) per annum. APPROVED by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the .3 day of 1994. Mayor/Chairperson ATTEST: - APPRPYED AS TO FO City Clerk/Agency Clerk City AttomeylAgenc ounsel A`� REVIEWED AND APPROVED: IT PROVED: 0 Ci Administrator Depu City A inist for Chief Executive Director Administrative S ' es Dept. 7lopagree/WO/94 AMENDMENT NO. 12 TO OPERATIVE AGREEMENT NO. 5 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR THE IMPLEMENTATION OF THE HUNTINGTON CENTER PROJECT AREA. Operative Agreement No. 5 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Huntington Center project area is hereby amended as follows: Section 7 is amended to read as follows: SECTION 7 - In addition to the above stated assistance provided by the City to the Agency, the Agency's debt is as follows: Previous Balance $ 1,202,890 Decrease (275.434) Decrease 07/01/93 to 06/30/94 Decrease (56,359) Decrease 09/01/94 to 09/30/94 New Balance $ 871,097 Such new balance of Eight Hundred Seventy-One Thousand, Ninety Seven Dollars ($871,097) represents principal and accrued interest through September 30, 1994. These sums shall be a debt of the Agency to the City and bear simple interest at the rate of seven percent (7-00%) per annum- APPROVED by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the �' day of 1994. Mayor/Chairperson ATTEST: APPROVED AS TO 7' --;--7 City Clerk/Agency Clerk City Attorney/Agency ounsel VIE AND APPROVED: IN N VED: City Administrator Depu Admi istrato Chief Executive Director Adminil'ative Se ept. 7/opag ree/9120/94 WPADIERT:1446 } REQI&T FOR CITY COU&IL REDEVELOPMENT AGENCY ACTION Deft September 7, 1993 Submitted to: Honorable Mayor/Chair and City Council/Agency Members Submitted by: Michael T. Uberuaga, City Administrator/Executive Director Prepared by: Dan T. Vi 11 el 1 a, Acting Deputy City Administrator Barbara A. Kaiser, Redevelopment Director Subject: 1993/94 AGENCY/CITY OPERATIVE AGREEMENTS Consistent with Council Policy? Ix] Yes [ ] New Policy or ExceptionrAPF'ROVED BI' CITY COli,\'c'11 Statement of Issue, Recommendation,Analysis, Funding Source,Altemative A ions,Attecfiments: Carl"Y FRK STATEMENT OF ISSU The Redevelopment Agency is required to file an annual statement with the County of Orange documenting the Agency' s debt. This statement of debt is also needed for audit purposes as well as to keep the City Council informed of the changes in the debt owed the City by the Redevelopment Agency. RECOMMENDATION: That the City Council/Redevelopment Agency approve the following Operative Agreement Amendments for fiscal year 1992/93: Amendment Increased/(Decreased) Project Area _ Number _ Debt to City_ Main/Pier 12 $ 4,786,720 Talbert/Beach 12 161 ,440 Oakview 12 (74,610) Yorktown/Lake 11 27,396 Huntington Center 11 (112.385) Total Increase $ 4.7§8.U1 ANALYSIS: Summary of Changes in Redevelopment Agency Debt to the City. 1992/23 Total Debt to City 7/l/92 $ 75,703,131 Increases in Debt: Indirect Advances 263,316 Interest on Prior Debt 5,780,2U Total Increases 6,044,259 Decreases in Debt: Repayments of Debt (1 ,255,698) Total Decreases ( 1 ,255,698) Total Debt to City 6/30/93 $ 80.491 .692 ,/ i 'WEQUEST FOR CITY COUNCIL ACTI 19 /93 AGENCY/CITY OPERATIVE AGRE tNTS A detailed description of each of these categories is as follows: 1 . Indirect Advances - The MSI Report was used to compute the indirect costs incurred by the General Fund on behalf of the Agency. The Health and Safety Code allows these amounts to show as advances to the Agency and count as debt. The cost of the Business Development Division (which is paid out of Redevelopment funds) is credited against the debt. Below is an analysis of how the amount was computed: Total General Fund Indirect Costs $ 494,475 Less Credits: ( 231,159) Total 1992/93 Indirect Charges $ 316 The breakdown by project area is as follows: Main/Pier $ 123,957 Talbert/Beach 13,202 Oakview 63,292 Yorktown/Lake 9,863 Huntington Center 53,003 Total 1992/93 Indirect Charges $ 263.316 2. Interes - The City charged the Agency 7.75% interest during the year on all outstanding advances. Interest accrued to the following funds of the City: General Fund: Direct Advances $ 1 ,067,454 Indirect Advances 749,133 Land Sales 3,475,506 Sub-Total General Fund $ 5,292.093 Other Funds: Gas Tax Fund $ 54,690 Water Fund 137,571 Sewer Fund 22,779 Drainage Fund 37,890 Park Acquisition and Development 207,663 Parking Authority 8,370 Capital Improvement Fund 19,887 Sub-Total $ 488,850 Total $ 5380.943 -2- IEQUEST FOR CITY COUNCIL ACTIO 19 /93 AGENCY/CITY OPERATIVE AGREEM NTS The above total interest expense was accrued to the following project areas: Main/Pier $ 5,112,763 Talbert/Beach 221 ,184 Oakview 264,850 Yorktown/Lake 97,533 Huntington Center _ 84,613 Total $ 5.78Q.943 3. Repayments of Debt - The 1992/93 Annual Budget authorized $1 ,252,500 of debt repayments to the City. Staff is recommending an additional $3,198 of repayments to fully pay the Water Fund debt to the Talbert Beach Project Area. $127,054 of the budgeted repayment was shifted from Talbert/Beach to Oakview because the Talbert/Beach Project Area had insufficient debt to absorb the original debt repayment. The additional debt repayment will be made from the Oakview Project Area to the General Fund. All of the repayments were applied in accordance with previous City Council /Redevelopment Agency direction (see attached) . Interest and principal on direct advances were credited first. These operative agreements do not address changes in debt from non-City sources. The loan agreements from the Huntington Beach Public Financing Authority (bonds) , Emerald Cove (COP's), mortgages, and notes payable to outside parties are not included because each contains a separate agreement. However, the amounts are summarized in Exhibit I . (Summary of Agency Debt at June 30, 1993) . ALTERNATIVE ACTION: 1 . Approve the amendments with modifications. 2. Do not approve the agreements. FUNDING SOURCE: Not applicable. ATTACHMENTS: 1 . Exhibit I - Summary of Redevelopment Agency debt at June 30, 1993. 2. Exhibit II - Summary of Changes in Operative Agreement Debt for the Fiscal Year ending June 30, 1993. 3. Amendments to Operative Agreements 4. Request for Council Action dated August 3, 1993 - Financial Strategy Plan -3- EXHIBIT 1 SUMMARY OF REDEVELOPMENT AGENCY DEBT JUNE 30, 1993 TALBERT/ YORKTOWN/ HUNTINGTON GENERAL FUND: MAIN/PIER BEACH OAKVIEW LAKE CENTER TOTAL DIRECT ADVANCES 11,485,792 0 310,864 251,383 150,097 12,198,136 INTEREST ON DIRECT ADVANCES 2,455,712 0 24,092 151,471 11,633 2,642,907 TOTAL DIRECT ADVANCES 13,941,504 0 334,956 402,854 161,730 14,841,043 INDIRECT ADVANCES 4,014,577 (0) 2,375,352 286,991 849,B15 7,539,936 INTEREST ON INDIRECT ADVANCES 1,691.556 0 1,003,602 120,074 191,346 3,006,578 TOTAL INDIRECT ADVANCES 5,706,133 (0) 3,378,954 407,065 1,041,161 10,546,514 LAND SALES 32,589,147 245,000 32,834,147 • INTEREST ON LAND SALES 15,457,050 29,545 15,486,595 TOTAL LAND SALES 48,046,107 R 0 0 274,545 0 48,320,742 TOTAL GENERAL FUND 67,693,834 (0) 3,713,910 1,084,464 1,202,890 73,708,300 OTHER FUNDS: SEVER FUND 241,933 74,770 0 0 0 316,703 DRAINAGE FUND 418,199 108,592 0 0 0 526,791 GAS TAX FUND 760,362 0 0 0 0 760,362 PARKING AUTHORITY FUND 116,370 0 0 0 0 116,370 PARK A AND D 2,884,691 2,884,691 CAPITAL IMPROVEMENT FUND 0 0 0 276,495 0 276,495 WATER FUND 1,915,183 0 0 0 0 1,915,183 TOTAL OTHER FUNDS 3,452,047 3,068,052 0 276,495 0 6,796,�594 TOTAL ALL CITY FUNDS 71,145,881 3,068,052 T,ff3,910 1,360,959 1,202,890 80,491,692 DEBT TO OUTSIDE PARTIES HBPFA 13,725,355 1,879,775 3,419,000 11,401,950 30,426,080 MORTGAGES PAYABLE 798,000 0 0 217,810 0 1,015,810 EMERALD COVE BONDS 0 5,710,000 0 0 5,710,000 TOTAL AGENCY DEBT 85,669,236 10,657,827 7,132,910 1,578,769 12,604,840 117,643,582 EXHIBIT II STATEMENT OF CHANGES IN OPERATIVE AGREEMENT DEBT FISCAL YEAR ENDING JUNE 30, 1993 MAIN/PIER TALBERT OAKVIEW YKTN/LAKE HTG CTR TOTAL BEACH INCREASES: GENERAL FUND PRINCIPAL: 0 INDIRECT COSTS 123,957 13,202 63,292 9,863 53,003 263,316 0 TOTAL GENERAL FUND PRINCIPAL ADV. 123,957 131202 63,292 9,863 53,003 263,316 INTEREST ON GENERAL FUND DEBT 4,864,472 512 264,850 77,646 84,613 5,292,093 INTEREST ON OTHER FUNDS DEBT 248,291 220,672 0 19,887 0 488,850 •, TOTAL INTEREST 5,112,763 221,iB4 264,850 97,533 84,613 5,780,943 TOTAL INCREASES IN CITY DEBT 5,236,720 234,386 328,142 107,396 137,615 • 6,044,259 DECREASES: GENERAL FUND PRINCIPAL 0 19,859 298,924 0 220,363 539,146 GENERAL FUND INTEREST 450,000 1,047 103,828 80,000 29,637 664,512 OTHER FUNDS PRINCIPAL 0 32,882 0 0 0 32,882 OTHER FUNDS INTEREST 0 19,158 0 0 0 19,158 TOTAL REDUCTIONS 450,000 72,946 402,752 80,000 250,000 1,255,698 NET INCREASE (DECREASE) IN DEBT 4,786,720 161,440 (74,610) 27,396 (112,385) 4,788,561 OPERATIVE AGREEMENT DEBT, JULY 1, 1992 66,359,161 2,906,612 3,788,520 1,333,563 1,315,275 75,703,130 OPERATIVE AGREEMENT DEBT, JUNE 30, 1993 71,145,881 3,068,052 3,713,910 1,360,959 1,202,890 80,491,692 i REQUAT FOR CITY COUNCIL/ - REDEVELOPMENT AGENCY ACTION ED 92-31----; Date August 3, 1992 Submitted to: Honorable Mayor/Chairman & City Council/Redevelopment Agency Members, QL� a Submitted by: Michael T. Uberuaga, City Administrator/Executive Dire 't GL Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic rlopment Subject: Approval of Financial Strategy Plan Including Debt Repayment for the Redevelopment Ag ncy Consistent with Council Policy? l Yes ( ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source, Alters M6&A —WrWAQ. 19� 1 STATEM NT_QF LSSUE• f ITY .• ...... On September 16, 1991, Council approved Amendments to the Operative Agreements between the Redevelopment Agency and the City for the five Redevelopment Project Areas. As part of that action, staff was instructed to prepare a plan to repay the debt of the Agency, including the $7 million in General Fund cash advances. Staff has prepared a Financial Strategy Plan including debt repayment which is presented in this staff report for Agency/City Council consideration. £t,ECOMRINDED COUNCIL/AGENCY ACTION: 1. Approve the Financial Strategy Plan as proposed, including repayment of City debt by the Agency as provided in the attached summary. 2. Direct staff to prepare a new Operative Agreement incorporating the proposed repayment plan for Fiscal Year 1991/92. ANALYSIS: �tr_oduction The Agency has incurred debt since 1982 in order to receive tax increment funds from the County. Each year the City Council has approved changes in each project area's debt by approving amendments to Operative Agreements between the City and Agency. Staff is now in a position to recommend a Financial Strategy Plan including a debt repayment plan that will repay all of the Agency's General Fund cash advances, approximately $9 million, according to the following schedule: Project Area Payoff Date Main-Pier 2009/10 Yorktown-Lake 1999/00 Talbert-Beach 1992/93 Oakview 1995/96 Huntington Center 1993/94 In order to achieve the timetable above, Council will need to approve the proposed debt repayment plan below. Any changes to said plan may lengthen the payback of General Fund cash advances. Exhibit I summarizes Agency Debt at June 30, 1991. Following this action, staff will prepare a similar summary of Agency Debt at June 30, 1992 as part of the 91/92 Operative Agreement. ProposedDcbt Repayment Plan: I. Approve the following repayments of Agency debt in fiscal year 1991/92: a. Budgeted cash repayment of $972,500 to the General Fund. (APPROVED) b. Parking Structure Transfer -- Staff is proposing to transfer the Main/Promenade Parking Structure from the Agency to the City and reduce Agency parking structure fund debt by $18,040,780 plus accrued interest since 1989 and reduce Main/Pier land sales debt by $3,133,500 plus accrued interest since 1989. c. Kou al rocpg--ds - Transfer the proceeds (cash) from the $1,250,000 sale of commercial space from the Main/Promenade Parking Structure to the General Fund and reduce Agency debt by $1,250,000. (APPROVED) d. General Plan Urban Design Element - The Agency transferred $50,000 to the General Fund to assist with funding the General Plan Update. Reduce Main/Pier debt by $50,000. e. HB Conference and Visitors Bureau - At the end of 1990/91, the Agency transferred $115,000 to the General Fund to cover a portion of the Bureau's $150,000 General Fund grant. In 1991/92, the Agency transferred $30,000 to the Bureau for services not covered in their 1991/92 grant. Reduce Agency debt by $145,000. f. MayeL_CoWration Lease faterfront) - In 1991/92, the General Fund received $165,000 in lease payments from the Robert Mayer Corporation, which should have gone to the Agency, which is the property owner. Reduce Main/Pier debt by $165,000. g. Awh3mces - Agency owned appliances were transferred to City departments during 91/92. Reduce Agency debt by $1,587. h. 1 p. of Ag y .Owned Building r City Purposes - The City occupies, or has directed the Agency to lease non-profit associations, including the Police Department, a total of 4,000 sq. ft. of space in downtown buildings at 204 - Sth Street (Shank house) and 411 Olive Avenue (Surfing Museum). The space could be leased at $1.00/sq. ft. and could therefore generate $4,000/month for the Agency. Reduce Main/Pier debt by $48,000. 1. Wind-an-Sea - Clean-up of hazardous materials in the amount of $50,000 for property transferred from City to Agency. Reduce Main/Pier debt by $50,000. II. Annual Repayment of debt by the Agency shall be scheduled in the following priority (to be further defined in dollar amounts in the 1991/92 Operative Agreement): a. Contracts (including mortgages), and Bond (HBPFA) debt. b. Any City debt under $100,000. c. General Fund cash advances (principal and interest). d. General Fund Deferred Development fees. e. General Fund indirect costs (overhead costs determined by City). f. General Fund land sales. g. Other Fund Debt (i.e.: sewer, water, park acquisition and development, gas, etc.) III. Other Conditions: a. The City will contract with the Redevelopment Agency (through the Operative Agreement) to provide economic development services throughout the City. Credit will be provided to the Agency for staff and operating costs, (as approved annually in the Agency budget), used for economic development, business development, and other general city services not considered part of redevelopment or activities outside of redevelopment geographic boundaries. This amount will be credited to city debt repayment. A monthly cost report will be generated by Economic Development staff. b. Credit against cash advances to be provided for programs and projects undertaken by the Agency for benefit of the city (i.e., police substation, HB Conference and Visitors Bureau, etc.). c. The MSI report will be used to estimate indirect costs charged by other city departments to the Agency. Direct costs charged by city departments will be documented by the city at least annually. d. Eliminate the entire CDBG debt by crediting the Agency for current development programs provided for city benefit using CDBG funds (i.e., handicap ramps, skateboard parks, Oakview library, backstreet alley improvements, etc.). e. Land sales from the city to the Agency shall be done at appraised value less any toxic/hazardous materials remediation costs. f. Rent from Agency owned ]eased properties shall be deposited into Agency accounts. . • i� Additional Background Inf_Qrmatio n: The establishment of debt is important to Redevelopment Agencies since it is required for the Agency to receive tax increment revenues. if a project area has no debt, no tax increment revenues are received. It is therefore important to document and maintain sufficient, adequate debt to recover tax increment revenues. Redevelopment Agency debt is incurred in a variety of ways such as the following: 1. Gel]grial Fund Cash Advances -- direct loans from the General Fund for Agency operations and/or projects. 2. Indirect Charges -- Work done for the Agency by General Fund operations. This amount is computed annually based on a cost-allocation plan. 3. Tax A11omion Bonds - Bonds issued in 1988 and refinanced in 1992, pledging future tax revenues in four project areas as security. These bonds have "first-claim" on all tax increment revenues. 4. Deferred Deve]Qomgj)l Fees -- In some prior projects, the Agency has agreed to pay the City fees that are normally paid at the start of project construction. The fees will be repaid to the City from tax increment revenues. S. Debt to Ousside _rtiU -- The Agency has incurred mortgages for property purchases. 6. Land Sales - The City has sold the Agency land to facilitate certain Redevelopment projects. FUNDING SQURCE: None required by this action. ALIMATTVE ACT1QNS: Direct staff to make changes to the proposed plan. AT-TACE[h ENS: Summary of Agency Debt, June 30, 1991. MTU/BAKJMJG:sar 0960r EXHIBIT 1 SUMMARY OF REDEVELOPMENT AGENCY DEBT JUNE 30, 1993 TALBERT/ YORKTOWN/ HUNTINGTON GENERAL FUND: MAIN/PIER BEACH OAKVIEW LAKE CENTER TOTAL AGENCY ADVANCE OF BOND PROCEEDS 4,445,000 4,445,000 INTEREST ON AGENCY ADVANCE/BOND PROCEEDS 831,099 831,099 TOTAL AGENCY ADVANCE OF BOND PROCEEDS 5,276,099 0 0 0 0 5,276,099 DIRECT ADVANCES 7,040,792 0 310,864 251,383 150,097 7,753,136 INTEREST ON DIRECT ADVANCES 1.624,613 0 24,092 151.471 11,633 1,811,808 TOTAL DIRECT ADVANCES 8,665,405 0 334,956 402,854 161,730 9,564,944 INDIRECT ADVANCES 4,014,577 (0) 2,375,352 286,991 849,815 7,539,936 INTEREST ON INDIRECT ADVANCES 1,691,556 0 1,003,602 120,074 191,346 3,006,578 TOTAL INDIRECT ADVANCES 5,TO6,133 (0) 3,378,954 407,065 1,041,161 10,546,514 • LAND SALES 32,589,14'7 245,000 32,834,147 INTEREST ON LAND SALES 15,457,050 29,545 15,486,595 TOTAL LAND SALES 48,046,197 0 0 274,545 0 48,320,742 TOTAL GENERAL FUND 57,693,834 (0) 3,713,910 1,084,464 1,202,890 73,708,300 OTHER FUNDS: SEWER FUND 241,933 74,770 0 0 0 316,703 DRAINAGE FUND 418,199 108,592 0 0 0 526,791 GAS TAX FUND 760,362 0 0 0 0 760,362 PARKING AUTHORITY FUND 116,370 0 0 0 0 116,370 PARK A AND D 2,884,691 2,884,691 CAPITAL IMPROVEMENT FUND 0 0 0 276,495 0 276,495 WATER FUND 1,915,183 0 0 0 0 1,915,183 TOTAL OTHER FUNDS 3,452,047 3,068,052 0 276,495 0 6,T96,594 TOTAL ALL CITY FUNDS 71,145,881 3,068,052 3,713,910 1,360,959 1,202,890 80,491,692 DEBT TO OUTSIDE PARTIES HBPFA 13,725,355 1,879,775 3,419,000 11,401,950 30,426,080 MORTGAGES PAYABLE 798,000 0 0 217,810 0 1,015,810 EMERALD COVE BONDS 0 5,710.000 0 0 5,710,000 TOTAL DEBT TO OUTSIDE PARTIES 14,523,355 71589,775 3,419,000 217,810 11,401,950 37, 151,890 TOTAL AGENCY DEBT 85,669,236 10,657,827 7,132,910 1,578,769 12,604,840 117,643,582 Jl CITY OF HUNTINGTQN BEACH INTER-DEPARTMENT COMMUNICATION Hl1NT1.NCT(>N MACH TO: Honorable Mayor and City Council Members � FROM: Michael T. Uberuaga, City AdministratorV`-" PREPARED BY: Barbara A. Kaiser, Director of Redevelopment+t"" DATE: September 1, 1993 SUBJECT: Operative Agreement 1992193 Operative Agreement: Pu se - The purpose of the Operative Agreement is to document the debt owed by the Redevelopment Agency to various parties including: City of Huntington Beach, and outside parties (such as bond holders and mortgages). The Redevelopment Agency must owe debt to the city and/or outside parties in order to collect $5.2 million of tax increment annually from the County of Orange. Without any debt, the county would keep the tax proceeds which would not be paid to the Agency to invest in the five redevelopment areas. Tax Increment Revenue - The Redevelopment Agency has received $25.5 million of tax proceeds from the county to be spent within the five redevelopment areas since 1984 (Exhibit A). It is projected that $5.2 million will be received during fiscal year 1993/94, and that this amount will increase annually by a small amount (Exhibit B). Agency's Current Financial Status - Debt City: Direct Cash Advances $ 7,753,136 Interest on Cash Advances 1,811,808 Advance of Bond Proceeds & Interest 5,276,099 Indirect Cash Advances & Interest 10,546,514 Land Sales & Interest 48,320,742 Subtotal 73,708,300 Other City Funds Debt 6,796,594 Subtotal City Debt $ 80,491,692 Debt to Other Parties: HBPFA Bonds $ 30,426,080 Mortgages 1,015,810 Emerald Cove Bonds 75. 10.000 Subtotal 37,151,890 Total Agency Debt $117,643,583 Agency's Current Financial Status - Assets Against the debt of$117 million, the Agency currently has the following assets: Land Holdings: Waterfront $ 22,400,000 Third Block West 2,819,730 Town Square 19250,000 Other 9,890,075 Subtotal $ 36,359,805 Emerald Cove Senior Apartments 5,710,000 Cash on Hand 18,300,598 Funds Due from Others: Abdelmuti Loan 4,000,000 Waterfront Hilton AV Credit 200.000 Total $ 64,570,403 Interest Payments - Most of the difference between the Agency's debt and assets is interest that accrues to outstanding debt at a rate of 7.75% annually. Interest alone totals $21,136,080 on direct and indirect advances and land sales. This $21,136,080 is an interest charge which assists the Agency in proving that sufficient debt exists in order to collect tax increment funds from the county. General Fund Cam - Over the years, the city has advanced the Agency $7,753,136 in cash to initiate redevelopment projects. The Agency paid $1.2 million (FY 1992/93) towards this debt. Agency debt repayment to the city since 1989 totals $3.5 million (Exhibit Q. In addition, the Agency makes payments on other funds debt, bond payments, and mortgage payments. 2 Agency Debt Increase - The increased Agency debt is attributable to: Indirect Costs (MSI) $ 263,316 Interest Charges 5,780,943 Total $ 6,044,259 Less Agency payment to the city - 1,255,698 Net increase in Agency debt $ 4,788,561 The Main-Pier Project Area shows the greatest increase in interest (debt), since it owes the city $7,040,792 in cash advances, and holds land transferred at a value of $32.5 million. The Agency has not received city general fund cash advances since 1988. Staff will be providing this information to the City Council at the meeting of September 7, when the Operative Agreement is scheduled for discussion. MTU/BAK:ls 607 3 Review of Tax Increment Revenue . Fiscal Year 83-84 $179279 84-85 75, 130 ! 85-86 506,599 86-81 11138,813 87-88 119719161 88-89 2,464,596 89-90 31873,750 90-91 59052,613 91 -92 51286,000 92-93 591709372* Total: $259566,313 ' estimated H N H b Projections of Tax Increment Revenue :Fiscal Year Amount � • 93-94 $5,239,6471 94-95 51681 ,007 95-96 61332,375 96-97 617589990 97-98 61923,838 � m x x w m Repayment of Agency Cash to City, Annual amounts since 1982- 1992 : Fiscal Year Amount pre- 89 $0 89-90 6009000 90-91 7151500 91 -92 9729500 92-93 11252,500 � Total: $3,5409500 m x x m H n AGENDA ITEM F-4 W Y 3 CITY - REDEVELOPMENT �4Q AGENCY OPERATIVE AGREEMENTS Q Amendments - FY 1992/93 4, TAX INCREMENT REVENUE $ IN MILLIONS 600 505 529 517 500-11 387 4 00 3 00 197 2 00 1 14 1 00 02 0 08 0 00 84 85 86 87 88 89 90 91 92 93 s FISCAL YEAR 917193 AGENDA ITEM F-4 AGENCY DEBT TO CITY Cash Advances: 1982-87 $7,753,136 Interest on Advances 1,811,808 Advance of Bond Proceeds 5,276,099 Indirect Costs 102546,514 Land Sales 48,320,742 SUBTOTAL 73,708,299 Other City Funds Debt 6 79fi 594 TOTAL $80,5043893 AGENCY DEBT TO OTHER PARTIES Tax Increment Bonds $30,4263080 Mortgages 1,015,810 Emerald Cove Bonds 5,710,000 TOTAL $379151,890 9/7I93 AMENDMENT NO. 11 TO OPERATIVE AGREEMENT NO. 4 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR THE IMPLEMENTATION OF THE YORKTOWN/LAKE PROJECT AREA Operative Agreement No. 4 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Yorktown/Lake project area is hereby amended as follows : Section 7 is amended to read as follows : SECTION 7 -- In addition to the above stated assistance provided by the City to the Agency, the Agency' s debt is as follows : Previous Balance $1, 333 , 563 Increase 27, 396 New Balance $1, 360, 959 Such new balance of One Million, Three Hundred Sixty Thousand, Nine Hundred Fifty-Nine Dollars ($1, 360 , 959) represents principal and accrued interest through June 30, 1993 . These sums shall be a debt of the Agency to the City and bear simple interest at the rate of seven and three-quarters percent (7 . 75%) per annum. APPROVED by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the 7th day of Spptp-mher , 1993 . Mayor/Chairperson ATTEST: APPROVED AS TO FORM: City Clerk/Agency .Cierk ttA ey/Agency Coun 1 • %' Cry 9-� �36v-( REVIEWED AND APPROVED: INITI AN AP OVED: I { City Administrator/ Deputy City Administrp'tor Chief Executive Officer Administrative Services Department 61793 : jn AMENDMENT NO. 11 TO OPERATIVE AGREEMENT NO. 5 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR THE IMPLEMENTATION OF THE HUNTINGTON CENTER PROJECT AREA Operative Agreement No . 5 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Huntington Center project area is hereby amended as follows : Section 7 is amended to read as follows : SECTION 7 ---- In addition to the above stated assistance provided by the City to the Agency, the Agency' s debt is as follows : Previous Balance $ 1 , 315, 275 Decrease (112 , 3BU New Balance $ 1, 202, 890 Such new balance of One Million, Two Hundred Two Thousand, Eight Hundred Ninety Dollars ($1, 202, 890 represents principal and accrued interest through June 30, 1993 . These sums shall be a debt of the Agency to the City and bear simple interest at the rate of seven and three-quarters percent (7 . 75%) per annum. APPROVED by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the 7th day of September-, 1993 . Mayor/Chairperson ATTEST: APPROVED AS TO FORM: City Clerk/Agency Clerk r ty A orney/Agency Counsel 1 . rJ v J REVIEWED AND APPROVED: �' I IT T AND ROVED: y ��Y3 City Administrator/ `Deputy City Administrator Chief Executive Officer Administrative Services Department 61793 : j n AMENDMENT NO. 12 TO OPERATIVE AGREEMENT NO. 1 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR THE IMPLEMENTATION OF THE TALBERT/BEACH PROJECT AREA Operative Agreement No. 1 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Talbert/Beach project area is hereby amended as follows : Section 7 is amended to read as follows : SECTION 7 -- In addition to the above stated assistance provided by the City to the Agency, the Agency' s debt is as follows : Previous Balance $ 2, 906, 612 Increase 161,440 New Balance $ 3 , 068, 052 Such new balance of Three Million, Sixty-Eight Thousand, Fifty-Two Dollars ($3 , 068, 052) represents principal and accrued interest through June 30, 1993 . These sums shall be a debt of the Agency to the City and bear simple interest at the rate of seven and three quarters percent (7 . 75%) per annum. • APPROVED by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the 7tb day of September , 1993 . Mayor/Chairperson ATTEST: APPROVED AS TO FORM: dww� City Clerk/Agency Clerk C* t oVey/Agen y Counsel REVIEWED AND APPROVED: INI11T �3 D AN A ROVE f City Administrator/ Deputy it. Administ ator Chief Executive Officer Administrative Sery ces Department 61793 : jn i - 1 AMENDMENT NO. 12 TO OPERATIVE AGREEMENT NO. 3 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR THE IMPLEMENTATION OF THE OAKVIEW PROJECT AREA Operative Agreement No . 3 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Oakview project area is hereby amended as follows : Section 7 is amended to read as follows : SECTION 7 -- In addition to the above stated assistance provided by the City to the Agency, the Agency' s debt is as follows : Previous Balance $ 3 , 788, 520 Decrease (74, 610) New Balance $ 3 , 713 , 910 Such new balance of Three Million, Seven Hundred Thirteen Thousand, Nine Hundred Ten Dollars ($3 , 713 , 910) represents principal and accrued interest through June 30, 1993 . These sums shall be a debt of the Agency to the City and bear simple interest at the rate of seven and three quarters percent (7 . 75%) per annum. w p f APPROVED by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the 7th day of September 1993 . Mayor/Chairperson ATTEST: APPROVED AS TO FORM: City Clerk/Agency`Clerk �Ct�y A rney/Agency Counsel/ (may i/��� S. REVIEWED AND APPROVED: INITIA iAN 4PP VED: i C.t City Administrator/ Deputy i A inistra r Chief Executive Officer Administr tive Servic Department 61793 : jn r AMENDMENT NO. 12 TO OPERATIVE AGREEMENT NO. 2 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR THE IMPLEMENTATION OF THE MAIN/PIER PROJECT AREA Operative Agreement No. 2 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Main/Pier project area is hereby amended as follows : Section 7 is amended to read as follows : SECTION 7 -- In addition to the above stated assistance provided by the City to the Agency, the Agency' s debt is as follows : Previous Balance $ 66 , 359 , 161 Increase 4 , 786, 720 New Balance $ 71, 145, 881 Such new balance of Seventy-One Million, One Hundred Forty-Five Thousand, Eight Hundred Eighty-One Dollars ($71, 145, 881) represents principal and accrued interest through June 30, 1993 . These sums shall be a debt of the Agency to the City and bear simple interest at the rate of seven and three-quarters percent (7. 75%) per annum. APPROVED by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the nth day of September 1993 . Mayor/Chairperson ATTEST: APPROVED AS TO FORM: City Clerk/Agency Clerk Cit torney/Agency Cou el 1�1�' _ S1 REVIEWED AND APPROVED: I I ��AD AP OVED: c City Admini trator/ Deputy--city Administr or Chief Executive Officer Administrative Servi es Department 61793 : jn